How Natural Gas Contributes to Clean Access to Energy 04 December - - PowerPoint PPT Presentation

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Feb 28, 2024 461 likes •525 views

PRESENTATION TO INTERNATIONAL GAS UNION (IGU) NATURAL GAS SYMPOSIUM How Natural Gas Contributes to Clean Access to Energy 04 December 2011 Muzi W. Mkhize Chief Director: Hydrocarbons muzi.mkhize@energy.gov.za +27 12 444 4015/6 1 KEY ISSUES Access

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PRESENTATION TO INTERNATIONAL GAS UNION (IGU) NATURAL GAS SYMPOSIUM

How Natural Gas Contributes to Clean Access to Energy 04 December 2011

Muzi W. Mkhize Chief Director: Hydrocarbons muzi.mkhize@energy.gov.za +27 12 444 4015/6

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KEY ISSUES

Access
Natural endowment and sourcing
Effective markets
Infrastructure – linking supply and demand
Pipelines (where a large market is less than 3000 km from the resource)
Liquefied natural gas (LNG) – long term contracts for gas help finance the infrastructure
For countries like the USA, Europeans states and Japan the drivers for natural gas usage:
Strategic diversification of energy resources (initially driven by the 1970’s oil crises)
The need for domestic space heating
A clean fuel resource (compared to coal and oil) – a relative cleanliness
The reluctance from the 1980s to commission nuclear power stations (except for countries like France)
All gas sources
Conventional Gas
Unconventional gas – CBM, shale gas; hydrates - natural gas trapped in a water-like state, known to exist in many places on the ocean floor
Pockets of gas – landfill gas, etc
Convergence of energy carriers
“Horses for courses”
Promotion of carriers;
Appliances and switching costs;
Comprehensive Legal and Regulatory Framework
Regulatory certainty; and
Permitting

IGU is a worldwide non‐profit organisation, founded in 1931, registered in Vevey, Switzerland with the present Secretariat located in Oslo, Norway. It has 74 Charter members and 35 Associate members in 73 countries, of which South Africa is one. The objective of IGU is to promote the technical and economic progress of the gas industry.

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SOUTH AFRICAN CONTEXT

Exploration - Mainly offshore and regulated by PASA i.t.o. the MPRDA
RSA has very limited gas resources – ~3% of total primary energy consumption
South Coast : FO field development for indigenous gas as feedstock for PetroSA’s

GTL refinery in Mossel Bay

West Coast: Development of Ibhubesi Gas Field by Forest Oil in partnership with

PetroSA; developments on blocks north and south of Ibhubesi by PetroSA

Jury still out on shale gas potential: estimated ~485 trillion cubic feet (tcf) by the USA

Energy Information Administration

Natural Gas Trade Agreements with Mozambique and Namibia
120 million GJ/a annum gas from Pande and Temane gas fields to CTL refinery in

Secunda

From Secunda methane rich gas supplies commercial customers in KwaZulu Natal
Displacement of more polluting resources: coal and heavy fuel oil
Gas Compression Station in Komatipoort commissioned in 2009 - Increase gas flow

rate to 147 million GJ/a

Recent gas find in Mozambique augurs well for the region and RSA in particular
Kudu gas in Namibia still being investigated
Noted: reported gas finds in Tanzania estimated to be ~11 tcf

Intra‐regional trade in the context of ultimately improving intra‐African trade.

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SOUTH AFRICAN CONTEXT (contd.)

Establishment of a National Energy Regulator in 2005: Piped Gas Regulator within NERSA
Integrated Energy Planning is Key
White Paper of Energy Policy – security of energy supply through a diversified energy mix
National Energy Act – Energy planning matters and establishment of SANEDI
Twenty year liquid fuels infrastructure Roadmap
Collaboration among various government institutions, NGOs and private sector players
IRP 2010 - presents a 20-year view on South Africa’s energy (new electricity generation) mix
Seeks to balance growth in demand with South Africa’s commitments to reducing its dependence on coal and to reducing

climate-changing emissions

Ensuring security of electricity supply, as well as diversifying the mix away from coal and towards renewable sources and

nuclear energy

New electricity generation: imported gas ~ 6%, hydro power 6%, open-cycle gas turbines (OCGTs) 9%, coal 15% and

nuclear 23%: new gen from gas ~15%

Re-gasification terminal for LNG imported into the port of Ngqurha for a power plant and other clients in the region
Augmenting indigenous gas for the NOC’s GTL refinery in Mossel Bay
Amendment of the Gas Act
Amongst other things, unambiguously incorporate LNG and CNG
Independent System and Market Operator (ISMO) Bill
Will inter alia, facilitate the participation of independent power producers (IPPs) in electricity generation
Relevance to the PESTEL dynamics
Economic empowerment of historical disadvantaged South Africans (HDSA)
Challenges of Unemployment and poverty; gap between rich and poor; MDGs

Collaboration among key gas industry stakeholders as well as Government is vital to ensure that there is investment in the supporting infrastructure, skills development, improved local content and supplier development that is alive to our socio‐economic imperatives. Developing countries need to learn from concerted efforts of Europeans and Americans in creating an infrastructure of interconnected pipelines beyond political boarders.

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